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Punjab National Bank FD Interest Rate

Punjab National Bank (PNB) commenced its operations on 12 April 1895 from Lahore with an authorised capital of ₹ 2 Lakh and working capital of ₹ 20,000. The Bank was established by the spirit of natio...Read More

Punjab National Bank Fixed Deposit Interest Rates

Note: All interest rates are updated as of 30 Jan 2024
TenureFor General Citizen (p.a)For Senior Citizen (p.a)
7 days to 14 days3.5 %4 %
15 days to 29 days3.5 %4 %
30 days to 45 days3.5 %4 %
46 days to 90 days4.5 %5 %
91 days to 179 days4.5 %5 %
180 days to 270 days5.5 %6 %
271 days to less than a year5.8 %6.3 %
1 year6.75 %7.25 %
above 1 year to 399 days6.8 %7.3 %
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400 days
7.25 %7.25 %
401 Days to 4436.8 %7.3 %
444 days6.8 %7.3 %
445 days to 2 years6.8 %7.3 %
Above 2 years and up to 3 years7 %7.5 %
Above 3 years and up to 5 years6.5 %7 %
Above 5 years and up to 10 years6.5 %7.3 %

Fixed Deposit

Like most banks, PNB also offers investment opportunities in Fixed Deposits (FDs). FDs are one of the safest ways of investing. FD involves investing a lump-sum amount into a bank at a fixed interest rate and for a fixed time period. At the maturity of the period, you earn the principal amount along with the compound interest on it. Alternatively, interest may also be credited to the account periodically at the discretion of the FD holder.

PNB provides a range of Fixed Deposits, which have been discussed in the ensuing paras. Please note that the information captured in this article has been updated upto March 2023.

Features of PNB FD

Fixed Deposit comes with following features:

  1. PNB charges a 1% penalty on premature withdrawal.
  2. Beneficiaries can have nomination facilities with the FDs of PNB .
  3. Investors cannot deposit an additional amount in a Punjab National Bank FD once it has commenced. However, they can open a fresh PNB FD with the new amount.

Types of PNB Bank Fixed deposits

  • FD Scheme for Road Accident Victims: Aims to facilitate the claimants of victims of road accidents to place the funds received from Motor Tribunals as per court orders under Motor Accident Claims Annuity Deposit (MACAD) Scheme. FD concerned termed as `Motor Accident Claims Annuity Deposit’ (MACAD).Tenure can range from 36 to 120 months. Deposit for a longer period (i.e., more than 120 months) to be booked as per directions of the Court. Prevailing rate of interest for the tenure given on the deposit.Premature closure to be allowed with the prior permission of the Court.
  • Anupam Term Deposit Scheme: The fixed deposit scheme is available for a tenure of 6 to 120 months, with a minimum deposit amount of ₹ 10,000 and a maximum deposit amount of ₹1.99 crore. Depositors can also obtain a loan against their fixed deposit scheme. This scheme is open to individuals, partnership firms, companies, and other associations. However, minors, blind, and illiterate persons are not eligible to invest in this scheme.
  • Multi Capital Gain Account Scheme: This account serves the purpose of enabling individuals to credit their capital gains. It has a tenure ranging from 7 days to 10 years, with the option of premature withdrawal. However, early withdrawal is subject to a penalty.
  • Multi-Benefit Term Deposit Scheme: This fixed deposit scheme has a tenure ranging from 6 months to 120 months, with interest compounded quarterly and paid at maturity. The minimum deposit amount is ₹ 100, and the maximum deposit amount is ₹ 1.99 crore. Depositors can obtain a loan against their fixed deposit scheme, provided the deposit amount is above ₹ 10,000. The scheme is open to a range of entities, including individuals, minors, firms, companies, partnerships, proprietorships, HUFs, clubs, societies, educational institutions, and government/quasi-government bodies. Additionally, even blind and illiterate individuals can open an account under this scheme.
  • Special Term Deposit Scheme: This fixed deposit scheme has a tenure ranging from 1 to 10 years, with a minimum deposit amount of ₹ 100 and a maximum deposit amount of ₹ 1.99 crore. Depositors can also obtain a loan against their fixed deposit scheme, provided the deposit amount is above ₹ 10,000. The scheme is open to a wide range of entities, including individuals, minors, firms, companies, partnerships, proprietorships, HUFs, clubs, societies, educational institutions, government/quasi-government bodies, panchayats or municipalities, and even blind or illiterate persons.
  • Sugam Term Deposit Scheme: This fixed deposit scheme offers a flexible tenure ranging from 46 days to 120 months, with a minimum deposit amount of ₹ 10,000 and a maximum deposit amount of ₹ 10 crore. Depositors can obtain a loan against their fixed deposit scheme if the deposit amount is above ₹ 10,000. Additionally, partial withdrawal of a minimum amount of ₹ 10,000 is allowed, and no penalty is levied on partial or full withdrawal before the term ends. The scheme is open to a wide range of entities, including individuals, minors, firms, companies, partnerships, proprietorships, HUFs, clubs, societies, educational institutions, government/quasi-government bodies, panchayats or municipalities, and even blind or illiterate persons.
  • Ordinary Term Deposit Scheme: You can open a fixed deposit scheme with a tenure ranging from 7 days to 179 days with a minimum deposit amount of ₹ 100 and a maximum deposit amount of ₹ 1.99 crore. If your deposit amount is above ₹ 10,000, you can obtain a loan against your fixed deposit scheme. Individuals, minors, firms, companies, partnerships, proprietorships, Hindu Undivided Families (HUFs), clubs, societies, educational institutions, government or quasi-government bodies, panchayats or municipalities can open the account. Blind and illiterate individuals can also open the account.
  • PNB Tax Saver Fixed Deposit Scheme: PNB Tax Saver fixed deposit has a 5-year lock-in period, extendable up to 10 years, with a minimum deposit of ₹ 100 and a maximum of ₹ 1,50,000 per financial year. Loans against deposits are not allowed, and premature withdrawals are not permitted. Deposits are eligible for tax exemption under Section 80C of I-T Act for individuals and HUFs.
  • Floating Rate Fixed Deposit Scheme: The Floating Rate Fixed Deposit Scheme offers a deposit tenure of 7 days to 10 years, with a minimum deposit of ₹ 1,000 (multiples thereafter). Approval from Treasury Division, HO is mandatory for FDRs above ₹ 10 crore. Depositors can avail loan/overdraft facilities against their deposits, and overdraft is allowed for deposits over INR 10,000. Premature withdrawals are allowed but with a penalty. Eligible entities include individuals, minors, firms, companies, partnerships, HUFs, clubs, societies, educational institutions, government/quasi-government bodies, and blind/illiterate persons.
  • Growth Fixed Deposit Scheme: The deposit tenure for the Maturity Option in this scheme ranges between 7 days to 120 months, while for the Income Option, it ranges between 6 to 120 months. The minimum deposit amount is ₹ 2 crore (multiples of INR 1 thereafter) with a maximum deposit amount of ₹ 10 crore. Loan/overdraft facilities are available as per HO guidelines, and premature withdrawal is only available in the FD maturity option. Eligible entities include individuals, minors, firms, companies, partnerships, HUFs, clubs, societies, educational institutions, government/quasi-government bodies, and blind/illiterate persons.
  • NRE Rupee Sugam Term Deposit Scheme: The NRE Sugam Term Deposit Scheme allows NRIs to open a single or joint account with a minimum deposit of ₹ 10,000 and no maximum limit. Depositors can withdraw in multiples of ₹ 1,000, with the remaining amount continuing to earn interest. Auto-renewal is also available.
  • Varshik Aay Yojana (VAY) Deposit Scheme: Open a VAY Deposit for 24-120 months with a minimum deposit of ₹ 10,000 (in multiples of ₹ 1,000) and a maximum of ₹ 1.99 crore. Loan/overdraft facility available for deposits above ₹ 10,000. Eligible entities include individuals, minors, firms, companies, partnerships, HUFs, clubs, societies, educational institutions, government/quasi-government bodies, and blind/illiterate persons.
  • NRO Sugam Term Deposit Scheme: The NRO Sugam Term Deposit Scheme allows NRIs and POIs to deposit for a tenure ranging from 46 days to 120 months, with a minimum amount of ₹ 10,000 and no maximum limit. Premature withdrawal is allowed in multiples of ₹ 1,000. The account can be held jointly with residents or non-residents.
  • Motor Accident Claims Annuity Deposit (MACAD) Scheme: The Motor Accident Claims Annuity Deposit (MACAD) Scheme allows claimants of road accident victims to deposit their lump sum funds received from Motor Tribunals and receive Equated Monthly Instalments (EMIs) including principal amount and interest earned. Individuals, including minors with guardians, are eligible to invest with no maximum investment amount and an investment duration ranging from 36 to 120 months. The minimum deposit is based on a minimum monthly annuity of ₹ 1,000 for the relevant period, and interest rates will be the same as for regular fixed deposits. The scheme also offers nomination and premature withdrawal options, but no loan or advance is allowed on the deposit.
  • Pranam Fixed Deposit Scheme: Pranam Fixed Deposit Scheme offers a deposit tenure of 1-10 years with a minimum deposit of ₹ 100 (in multiples of ₹ 1) and a maximum of ₹ 1.99 crores. Deposits over ₹ 10,000 are eligible for loans, and premature withdrawals are allowed with no penalty for senior citizens (55 years or older). The scheme is exclusively for individuals aged 55 and above.
  • Bulk Fixed Deposit Scheme (ABOVE ₹ 10 CRORE): The deposit tenure for the Maturity Option ranges between 7 days to 120 months, while for the Income option, it ranges from 6 months to 120 months. The minimum deposit amount for a single deposit is above ₹ 10 crores, and in multiples thereafter. Depositors can avail loans and overdraft facilities against their deposits. However, premature withdrawals are not allowed. The account is open to individuals, minors, firms, companies, partnerships, proprietorships, HUFs, club societies, educational institutions, government or quasi-government bodies, panchayats or municipalities, and even blind and illiterate persons.
  • PNB Balika Siksha Deposit Scheme: The Sukanya Samriddhi Yojana (SSY) is a government scheme for the benefit of girl children. Girls who finish class VIII from Kasturba Gandhi Balika Vidyalayas, irrespective of their caste, or SC/ST girls who complete class VIII are eligible to enrol in class IX in State/UT Govt., Govt. aided, or local body schools. No initial deposit is required for opening a savings account, and the account will be opened on the basis of the birth certificate provided by the School Head. A fixed deposit of up to ₹ 3,000 can be made in the girl child's name, which can be withdrawn at the age of 18, subject to passing the class X Board Examination and continuing education for at least two years after enrolling in class IX.
  • PNB Systematic Deposit Plan: Under this plan, depositors can build their savings by depositing monthly instalments. The minimum instalment amount is ₹ 100, with a maximum limit of ten times the core amount in any given month. The tenure of the deposit account ranges from 6 to 60 months. Nomination and loan against deposit options are available, and interest income is paid half-yearly. The interest earned is calculated on a daily product basis.
  • PNB Uttam Term Deposit Scheme: Any person can open this FD (Proprietorship/Partnership Firm, Commercial Organization, Company/ Corporate Body, Hindu Undivided Family Association, Club, Society, etc.)First deposit should be a single deposit of ₹ 15L or above. Thereafter, FD for any amount is allowed. Maximum deposit allowed for upto ₹ 10 Cr. For Deposit above ₹ 10 Cr., prior permission from HO treasury is required to be obtained. Tenure can range from 91 days to 1 year. Rate of interest for deposit from ₹ 15L to ₹ 10 Cr. to be decided by HO: IRMD (ALM Cell). No auto renewal allowed. No premature withdrawal/ part withdrawal/ extension are permitted under the scheme, except in exceptional cases. Depositor can exercise either of the following options regarding receipt of interest on the deposit:
    • Income Option (FD holder receives interest in his/ her account on a periodical basis)
    •  Maturity Option (Reinvestment of interest on quarterly compounding basis)

Documents required to open a Fixed Deposit with PNB

To open an FD account with PNB, one would need the following documents

  1. FD application form(for offline mode)
  2. Two photographs
  3. Pan Card or a declaration in Form No. 60 or 61 of the Income-tax Act ,1961
  4. Identity proof (PAN Card, Aadhar Card, Passport, or Driving licence, etc.)
  5. Address proof (Electricity bills, telephone bill, Aadhar card, bank statement)
  6. Bank Saving Account details like account number, IFSC code and branch

 

  • Any other documents required by a sole proprietorship, partnership, companies, HUF, and trusts.

Eligibility to open an PNB FD

Following is the eligibility criteria to open FD in PNB-

  1. Resident individuals, including minors. Minors can invest in PNB FDs only when an adult is jointly opening an account with them.
  2. Sole proprietorship
  3. Partnership firms
  4. Public and private companies
  5. HUFs
  6. Trusts, associations and societies

How to open a FD Account?

Fixed deposit account can be opened in both online and offline way-

Through Mobile App- 

Step1- Download the PNB mobile application from the app store or play store and login.

Step3- Select ‘Open Fixed Deposit’ option.

Step4- Enter all the personal details and also enter the nominee details and opt for door service assistance.

Step5- After that bank’s representative will visit for verification.

Step 6- Once the application form and KYC documents are verified and approved, the PNB FD will be processed and booked. Subsequently, the FD certificate will be sent to the designated communication address. Additionally, a confirmation SMS will be sent to the mobile number registered with the account.

Offline way- 

Step1- Visit the bank branch.

Step2- Take the FD application form. 

Step3- Fill the required details and submit the necessary documents. 

Step4- Submit the form to the branch. 

Step5- On successfully processing the application, PNB will provide an FD receipt.

Step6- Also, one will receive an SMS confirmation on the registered mobile number.

Through Internet banking-

Step1- Login to the PNB NetBanking account.

Step2- Select the ‘Open Deposit’ option.

Step3- enter all the information, nominee details and maturity instruction

Step4- Finally opt for door to door service instructions,After that bank’s representative will visit for verification

Step 5- Once the application form and KYC documents are verified and approved, the PNB FD will be processed and booked. Subsequently, the FD certificate will be sent to the designated communication address. Additionally, a confirmation SMS will be sent to the mobile number registered with the account.

PNB Bank Fixed Deposit - Penalty on Premature Withdrawal

  • Depositors can withdraw their term deposits before the agreed-upon period, subject to a penalty for premature withdrawal. 
  • The penalty charge is 1% of the deposit amount, and the interest rate payable will be the contractual rate minus 1% or the rate under the scheme on the contractual date applicable for the tenor, whichever is lower. 
  • No penalty will be charged if the deposit is reinvested in another term deposit scheme of the bank for a period longer than the remaining contract period.
  • For joint accounts with "Either or Survivor" or "Former or Survivor" mandate, the surviving depositor can withdraw the term deposit without seeking the concurrence of the legal heirs of the deceased joint deposit holder, provided there is a joint mandate from both depositors. In such cases, premature withdrawal does not attract any penalty.

Tax implication on FD interest

1. The interest earned on all types of FDs is included in the total income and is taxable as per the prevailing slab rate.

2. As per section 80C of the I-T Act , the investor gets an exemption of ₹1,50,000 in tax saver FD investment.

3. In the case of a senior citizen (Age above 60 years), a deduction of up to ₹50,000 is available and for non-senior citizens up to ₹40,000.

4. If the PAN is not provided then, in that case, 20% TDS is levied.

5. In case your total income is below the taxable limit i.e. ₹ 2.5 lakhs, you can avoid TDS by submitting Form 15G to the bank.

6. In the case of senior citizens if your total income is below the taxable limit then you can avoid TDS by submitting Form 15H to the bank.

FAQs

Can you get a loan against PNB bank FD?

Yes, investors can get loans against PNB banks FD.

How many FDs can be opened in PNB?

There is no limit on number of FDs, you can open as many FDs as you want.

Is there any restriction on the number of FD accounts to be opened in Punjab National Bank?

No, the investor can open as many FD accounts with Punjab National Bank as they wish.

Is the Rs.5 lakh DICGC insurance cover applicable on Punjab National Bank FD?

Yes. Rs.5 lakh DICGC insurance cover is applicable on Punjab National Bank FD

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Punjab National Bank

Calculate Punjab National Bank FD Returns

₹1,00,000
400 days
7 days to 14 days15 days to 29 days30 days to 45 days46 days to 90 days91 days to 179 days180 days to 270 days271 days to less than a year1 yearabove 1 year to 399 days400 days401 Days to 443444 days445 days to 2 yearsAbove 2 years and up to 3 yearsAbove 3 years and up to 5 yearsAbove 5 years and up to 10 years
7.25 %
Yes
No
Maturity Amount₹1,07,945
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